Mumbai: The Maharashtra government is likely to soon clear a set of long-pending rules under the Maharashtra Cooperative Societies Act, paving the way for key operational reforms for cooperative housing societies across the state.
Draft Rules Pending Approval
Nearly a year after the draft rules were published (15 April 2025) the amendments are expected to be approved soon. Their notification will unlock reforms that have remained stalled since the Act was amended in 2019. At present, more than 1.25 lakh cooperative housing societies in Maharashtra continue to function under older provisions as the corresponding rules were never notified.
Interest on Defaulted Payments
One of the significant changes proposed relates to interest charged on defaulted payments by members. Under the new rules, societies will be allowed to levy interest on unpaid charges at a rate decided by the general body, but it cannot exceed simple interest of 12% per annum.
Revised Registration Fees
The amendments also revise registration fees for different categories of housing societies. Tenant ownership housing societies and other housing societies will have a registration fee of Rs 5,000. For tenant co-partnership housing societies, the fee will depend on the number of units — Rs 5,000 for societies with up to 50 units, Rs 7,500 for those with 51 to 250 units, and Rs 10,000 for societies with more than 250 units.
Special Provisions for Certain Societies
Special provisions have been made for certain categories, with housing societies of backward class persons and those formed under the Lok Awas Yojana required to pay a nominal registration fee of Rs 50. Cooperative housing associations and associations of societies will also have a registration fee of Rs 5,000.
Defined Borrowing Limits
The draft rules also define borrowing limits for housing societies with limited liability. According to the proposed framework, a society will not be permitted to incur liabilities exceeding ten times the total of its paid-up share capital, accumulated reserve fund, members’ contributions toward land and buildings, and the building fund, after deducting accumulated losses.
Redevelopment Funding Exception
However, a special provision has been included for redevelopment and self-redevelopment projects. In such cases, societies will be allowed to borrow funds based on the potential value of their land and property.
Casual Vacancy Filling Process
The rules also outline a structured process for filling casual vacancies in a society’s managing committee. Vacancies arising due to death, resignation, disqualification, removal or incapacity of a member can be filled by the managing committee. In societies with more than 250 members, the process will be governed by the Maharashtra Co-operative Societies (Election to Committee) Rules, 2014.
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Nomination and Voting Guidelines
To fill such vacancies, the secretary or an authorised person must invite nominations from members by issuing a seven-day notice on the society’s notice board. After scrutiny of nominations, valid candidates will be placed before the managing committee. If the number of candidates exceeds the available positions, the vacancies will be filled through a majority vote by the committee.
Limits on Nominated Members
The rules further state that nominated members cannot exceed one-third of the total strength of the committee at any point during its tenure, and the term of a co-opted member will remain valid only for the remaining tenure of the existing committee.
Clarity for Governance and Management
Officials say the approval of these rules will bring greater clarity to governance and financial management of cooperative housing societies, many of which have been awaiting updated regulatory provisions since the 2019 amendments to the Act.
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